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Cincinnati Real Estate Market – Week 32

by | Aug 17, 2020 | Market News, Real Estate

New Listings

This Week

691

vs. Last Week

-7.37%

vs. Last Month

+4.07%

vs. Last Year

-2.40%

Closings

This Week

539

vs. Last Week

-31.34%

vs. Last Month

vs. Last Year

+18.98%

Avg. Sale Price

This Week

$261,275

vs. Last Week

-8.10%

vs. Last Month

+2.52%

vs. Last Year

+18.29%

Avg. Days On Market

This Week

21.29

vs. Last Week

-23.39%

vs. Last Month

-12.06%

vs. Last Year

-20.38%

Absorption Rate

This Week

32.67%

vs. Equilibrium

+16.00%

vs. Last Week

+2.78%

vs. Last Year

+3.92%

Weekly figures are not the best measure of market conditions, because they only measure 7 days at a time. However, they do indicate market direction and fluctuation.

This week, New Listings figures are inconsistent vs. last week and vs. last month, but are only down slightly vs. last year. Closings are down dramatically vs. last week but up considerably vs. last year. This is most likely due to a rush of closings last week before July ended, as well as a delay of listings and closings caused by the COVID-19 pandemic. Avg. Sale Price is down quite a bit vs. last week, up a little vs. last month, and up big vs. last year. Avg. Days On Market figures are down dramatically across the board. The Absorption Rate has continued to rise to new heights week after week, for the past several weeks. Overall, these figures reflect a very tight market, with very low inventory and strong demand. It will be interesting to see if sellers who were delayed in listing due to the COVID-19 pandemic will list this year or if they will wait until next Spring. For buyers’ sake, let’s hope they list as soon as possible!

The Absorption Rate is a lesser known figure to the general public, but it may be the most important one. It factors in active & pending listings (current inventory), along with the average number of listings sold per month over the past 6 months. The resulting figure is the percentage of current inventory sold each month. Our current Absorption Rate of 32.67% can also be expressed as a 3.06 months’ supply of homes. This rate is 16.00% higher than the market equilibrium rate of 16.67%, or a 6 months’ supply of homes. When the absorption rate is higher than 16.67%, the market conditions favor sellers. When it’s lower than 16.67%, buyers have the upper hand.